Movement Alert|Lonpan Technology Falls 5.06% in Regular Trading, Stock Continues Trading Below Placement Price After Discounted Share Issuance

Market Focus06-25

On June 25, Lonpan Technology (02465.HK) declined 5.06% in regular trading, trading at HK$12.93/share, with turnover of approximately HK$51.05 million. The stock continues to trade below the HK$13.09 per share placement price completed just days earlier.

The company completed the placement of 15 million new H shares on June 22 at HK$13.09 per share, representing an approximately 8.91% discount to the pre-placement closing price and raising net proceeds of approximately HK$194 million. Following the placement, total H shares increased from 120 million to 135 million, while controlling shareholder Shi Junfeng and concert parties saw their stake diluted from 30.69% to 30.11%.

Multiple headwinds continue to pressure the stock. The discounted placement directly diluted existing shareholders' equity. Additionally, the company previously disclosed that a controlled subsidiary was required to pay back taxes and late fees totaling RMB 28.61 million, which will be recorded in current period profit and loss. The company reported consecutive annual losses in fiscal years 2024 and 2025, with asset-liability ratios rising to 74.94% and 79.77% respectively, further weighing on market sentiment.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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